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Chapter 13 Bankruptcy – Buffalo Grove – Ottenheimer Law Group

For debt-burdened individuals who have a steady income and are otherwise ineligible to file for a Chapter 7 bankruptcy, Chapter 13 offers a path forward that can allow them to restructure obligations while keeping control of their most important assets, including their home.

The Chapter 13 bankruptcy lawyers of Ottenheimer Law Group have assisted countless individuals and families throughout Chicagoland who are struggling with overwhelming debt, often from significant and unexpected expenses such as medical costs. We work with our clients to fully understand their situation, capabilities, and objectives so we can craft an approach that makes their debt manageable and positions them for post-bankruptcy financial stability.

What is Chapter 13 Bankruptcy?

In a Chapter 13 bankruptcy proceeding, the bankruptcy court and trustee, in conjunction with the debtor and their bankruptcy attorney, craft a debt consolidation and repayment program. Typically, this plan establishes a schedule for the repayment of debts over a three to five-year period.

Once the plan is accepted, the debtor makes an agreed-upon monthly payment to the court-appointed trustee who will then divide that payment between creditors. The monthly payment amount is correlated to the amount of disposable income the debtor has after paying for their basic and necessary expenses.

These necessary expenses can include mortgage payments as well as amounts due under a car loan. By agreeing to continue making monthly payments and pay any arrearages on such secured assets, the debtor can keep them, allowing them to remain in their home and keep other important property so long they stay current.

Bankruptcy Chapter 13 Bankruptcy Petition

What Can Chapter 13 Bankruptcy Do For You?

In addition to staying in your home and retaining other significant assets, Chapter 13 bankruptcy can provide many other immediate and long-term benefits, including:

  • Stopping debt collection efforts and lawsuits
  • Preventing foreclosure on your home
  • Stopping repossession of vehicles and other secured assets
  • Lifting any freeze placed on your bank account
  • Preventing utility shut-offs and reestablishing service
  • Discharging hundreds and thousands of dollars of debt

As in a Chapter 7 bankruptcy, certain obligations such as child support, student loans, and criminal fines, will not be discharged in a Chapter 13 proceeding. Additionally, any efforts to incur new debt, sell or transfer any property, or purchase items on credit must first be approved by the bankruptcy court. If a debtor fails to make payments as required under the plan, secured creditors can seek relief from the bankruptcy stay and resume collection or foreclosure actions.

Can Businesses File For Chapter 13 Bankruptcy?

Only individuals can seek Chapter 13 bankruptcy protection. However, business owners who run their businesses as sole proprietorships can file a personal Chapter 13 bankruptcy to reorganize both their personal and business debts.

By filing a Chapter 13, a sole proprietor may be able to protect all their business assets and keep their doors open while reorganizing their debts.

Speak With a Chapter 13 Bankruptcy Lawyer Today To Discuss Your Options.

Deciding to file for bankruptcy protection is no small decision. Neither is determining which chapter of the Bankruptcy Code will provide the most benefits and lead to an optimal outcome. At Ottenheimer Law Group, our Chapter 13 bankruptcy attorneys will work with you to pursue the best course of action and guide you through the process.

Please contact the law offices of Ottenheimer Law Group today at (847) 520-9400 or fill out our online form to arrange for your consultation.

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